Sino Land and Hopewell have raised prices at The Avenue in Wan Chai by 2 per cent after buyers snapped up the first batch of 220 units in less than four hours.

Victor Tin Sio-un, an associate director of developer Sino Land, said the two firms had pulled in HK$1.8 billion from the biggest upmarket project to be put on sale on Hong Kong Island this year after selling the units for an average price of HK$19,100 per square foot.

"Most of the buyers bought in individual names," he said, with more than 10 purchasers buying two units.

Given the enthusiastic response, he said the developers had released a price list for the next batch of 110 units at an average price of HK$19,776 per square foot after factoring in discounts of 17.5 per cent offered as sweeteners to buyers.

Inclusive of the discounts, a 455 square foot unit on the sixth floor of Block 1 at The Avenue will change hands for HK$8.19 million, or HK$18,009 per square foot, while a 334 sq ft flat on the 25th floor of Block 2 is being offered for HK$6.81 million, or HK$20,393 per square foot.

On Tuesday, about 4,500 applicants signed up to be in the draw to buy the first batch of 220 units, which were offered at an average of HK$18,771 per square foot for buyers who paid in cash, 20 per cent below the HK$23,500 going rate in the secondary market for the J Residence, which is a nearby development.

One purchaser, who bought a studio flat for HK$6 million, said she would "keep it for leasing first because of the positive outlook for the rental market in Wan Chai", before living there herself later.

Another buyer bought a 591 square foot two-bedroom unit for HK$11 million. "I am very excited," she said after winning a ballot for the right to buy the first of the flats.

"The price is reasonable," she said, adding that she had not yet decided whether to live in the flat or treat it as an investment.

All eyes in the Hong Kong property market are on The Avenue development because it has attracted the strongest initial buying response since the Residential Properties (First-hand Sales) Ordinance - which imposed strict rules on the disclosure of information about new properties to prospective buyers - took effect on April 29.

Phase 2 of The Avenue, the first phase to be sold, will have 1,096 units.